From the following particulars ascertain the value of inventories as on 31st March, 2025: Inventory as on 1st April, 202410,50,000 Purchase made…

CA Foundation · Accounting · RTP · September 2025
From the following particulars ascertain the value of inventories as on 31st March, 2025: Inventory as on 1st April, 202410,50,000 Purchase made during the year 36,00,000 Sales - 55,50,000 Manufacturing Expenses - 3,00,000 Selling and Distribution Expenses - 1,50,000 Administration Expenses - 2,40,000 At the time of valuing inventory as on 31st March, 2024, a sum of 60,000 was written off on a particular item which was originally purchased for 1,65,000 and was sold during the year for 1,50,000. Except the above mentioned transaction, gross profit earned during the year was 20% on sales.

Suggested Answer and Working Notes:

Statement of Inventory in trade as on 31st March, 2025 Particulars ₹ Inventory as on 31st March, 2024 10,50,000 Less: Book value of abnormal inventory (₹ 1,65,000 -60,000) (₹ 1,05,000) 9,45,000 Add: Purchases 36,00,000 Manufacturing Expenses 3,00,000 48,45,000 Less: Cost of goods sold: Sales as per books 55,50,000 Less: Sales of abnormal item (₹ 1,50,000) 54,00,000 Less: Gross Profit @20% (₹ 10,80,000) (₹ 43,20,000) Inventory in trade as on 31st March, 2025 5,25,000

Topics: Inventories

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